Chess Anyone?

International Intrigues and the Federal Reserve

When one studies the early years of the Federal Reserve, one name stands out again and again, that of Warburg. Who is this powerful and German-Jewish family and why did they have so much influence in our government and over our finances?

Shortly after the Federal Reserve Act was passed, on Christmas Eve in 1913, the enormously influential German banking firm of Kuhn, Loeb & Co. sent one of their senior partners back to the United States to run the Fed ~ that’s right, from its start the Fed was in the hands of a foreigner, one Paul Moritz Warburg.

Why? The why of it all would lead us down a cumbersome and lengthy digression the length of a Russian novel, but Russia does enter into this story. A short digression about the nature of Warburg’s business is necessary for at least a cursory understanding of the nature of our problem; our problem being the beast known as the Fed, or more properly the Federal Reserve. So, Kuhn, Loeb & Co? It was an international banking firm that financed the Russian Revolution, placing the bloody Bolsheviks firmly in power. It was Jacob Schiff, Kuhn Loeb’s front man in New York and brother-in-law to Mr. Warburg, who paved the way for Leon Trostsky to slip smoothly into Russia, going so far as to convince the President to give the criminal a passport. This does not even scratch the surface of their political intrigues, and yet we see that these Warburgs and their ilk can and do play chess with the world as their board.

The American people didn’t want to play. In fact, we wanted nothing to do with a Central Bank, and yet Paul Warburg did a fine job of making the Fed appear magnanimous to the average voter. He didn’t call it a bank and there was to be more than one major branch, thereby allaying suspicions of central control. It was all a show and we fell for it. Why were the high-powered bankers themselves calling for banking reform, reform they intended to handle? It seems we didn’t ask as Warburg traveled the states convincing the public that reform was crucial for a stable economic future.* He didn’t mention the new income tax that would go along with it, a tax that would pay our government’s debt to these bankers who were so kind as to print our money for us and loan it to the treasury at interest, the interest coming out of our paychecks, naturally. No, this absurdity wasn’t mentioned. Stability, predictability, and growth! That was mentioned ad nauseam.

The machinations continued into the next generation. Paul’s son and the nephew of Jacob Schiff, was a Mr. James Paul Warburg, another big shot for Kuhn Loeb & Co. On February 17, 1950, this lovely fellow said to the US Senate, “We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.” James, too, was foreign born. He was introduced to the Fed via Roosevelt himself who, after seizing the nation’s gold supply in 1933, deposited this younger Warburg into the Treasury, where he had his own room ~ one needs a room of one’s own when involved in international intrigues, of course.

Yes, this foreign-born Mr. Warburg stayed inside the United States Treasury and visited its offices daily. Oh, that’s not the least bit suspicious, or is it? It’s difficult to keep this brief, but you get the idea. The Untied States Federal Reserve is a key piece on the chess board of international finance, and we are the tax-paying pawns.

As I write this, it’s mid-April and your taxes are due…again. Remember this: If you get a refund, that isn’t the government being generous. That was your money to begin with and the Feds should never have taken it. If you’re paying even more than you’ve already paid, ask your local IRS agent just where that money goes. The IRS, by the way, is based not out of this country but out of Puerto Rico.** That is a story for another day.

*Griffin, G. Edward. The Creature from Jekyll Island: A Second Look at the Federal Reserve (Fifth Edition). American Media, 2010, p. 444.

** This alarming fact is readily available via multiple sources. A simple internet search (IRS headquarters Puerto Rico) yields plenty of results.


Rachel Summers